What is a Provisional Sum?
Provisional Sum is a sum of money which may or may not be required to carry out work whose design is incomplete or whose total scope cannot be determined in the beginning. It is used to make an allowance for the said work in the contract. E.g. While excavating hard rock, the total quantity of hard rock cannot be determined beforehand. So a Provisional Sum will be allocated for the work.
How is it classified? Continue reading